Andi Irawan, Saefudin Saefudin, Melli Suryanty and M. Zulkarnain Yuliarso
This study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.
Abstract
Purpose
This study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.
Design/methodology/approach
This study used a simultaneous equations system for arranging the oil palm household economic model.
Findings
The results showed that the negative effect of demand disruption (decreasing of household income) is more than supply disruption (production declining). Declining household income due to COVID-19 caused farmer households to have no access to both basic need and other goods.
Research limitations/implications
The samples for before-pandemic data differed from the situation during COVID-19 in both the location and the person due to technical constraints in research sites.
Originality/value
The main contribution of this study was providing an empirical understanding of how the COVID-19 pandemic influences the economic behavior of the most vulnerable entities in the Indonesian palm oil industry (oil palm smallholder farmers' households). This study would provide baseline information on the impact of the COVID-19 pandemic on the economy of oil palm smallholder's household income.
Details
Keywords
Andi Irawan, Tri Nia Anjela, S.N. Melli Suryanty and Rahmi Yuristia
This study aims to verify the impact of the supply shock (fall in harvested output) and demand shock (fall in household income) due to the pandemic on the consumption of…
Abstract
Purpose
This study aims to verify the impact of the supply shock (fall in harvested output) and demand shock (fall in household income) due to the pandemic on the consumption of necessities and household savings of tilapia's smallholder farmer.
Design/methodology/approach
The researchers randomly chose 144 households as research samples using the proportional random sampling technique in Padang Jaya District, North Bengkulu Regency. Researchers collected data on household income, farm losses, household consumption for basic needs, labor demand, use of production inputs, the amount of output sold and saving both during and before the pandemic. The data were collected from the sample using a questionnaire prepared by the researchers. This study used a simultaneous equations system for arranging tilapia's smallholder farmer household economic model.
Findings
This study verified that the demand shock phenomenon makes households more severe than the supply shock phenomenon. The demand shock phenomenon made worse-off tilapia smallholder farmers because it caused their household savings to drop during the pandemic. The fall in savings will disrupt the stability of consumption of household necessities (health, food, education and clothing) in the future.
Originality/value
The main contribution of this study was providing empirical evidence about the impact of the demand and supply shock of COVID-19 on the most vulnerable entities in the Indonesian freshwater aquaculture industry, namely, smallholder farmer households of freshwater aquaculture fish.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0554.